Man in black 'will leave Gucci' if LVMH wins

Tom Ford, the Texan clothes designer credited with reviving the fortunes of Gucci, has warned that he will leave the company if Bernard Arnault's LVMH wins control of his company.

The man who wears only black said in an interview published yesterday: "You can never say never in an absolute and definitive way. But I do not think I will stay at Gucci if Mr Arnault wins the final victory."

His comments in Le Monde, on the eve of a key Dutch court ruling, are bound to cause consternation in the LVMH camp. Domenico de Sole, Gucci's chief executive, who has also played a key role in rescuing Dutch-listed Gucci from insolvency, has already said he would rather quit than work for Mr Arnault. Since the two teamed up in 1994, sales have jumped from $250m (£156m) to $1bn and profits over that period have leapt from £18m to $195m. Gucci has also captured the imagination of the world's smartest young women.

Mr Ford predicted an LVMH victory would create within Gucci conditions in which he would not be able to produce results.

Significantly, he has already cashed in his shares in Gucci. Last year the directors shared a $26m profit from an executive share option scheme. And he is entitled to a $20m "golden parachute" for leaving, if there is a change of control.

LVMH is the biggest luxury goods company in the world, with brands from Christian Dior and Givenchy to fine champagnes.

This morning Amsterdam's Court of Appeal will deliver a verdict on LVMH's call for a formal investigation of the Gucci board's handling of a recent $2.9bn issue of a 40% stake to Pinault-Printemps-Redoute, the French retail group.

LVMH, which paid $1.4bn for 34.4% of Gucci, now diluted to 19.6% by the PPR issue, is also challenging the legality of an earlier issue of 20m shares to Gucci employees.